Market Outlook and Trading Calls for 08Aug07

Nifty: 4356.35 +16.85 Points Sensex: 14932.77 +29.74 Points

FII Activity:
Cash Segment: 325.68 crores net sellers
Index Futures: 156.49 crores net buyers
Stock futures: 298.71 crores net sellers

Advance Decline ratio: 725:370

Outlook for 08Aug07:
Yesterday, the markets opened with a gap up and drifted down as the day progressed. Currently, the Nifty appears to be trading between the range of 4450 and 4340 on a closing basis. It is still advisable to sell at all higher levels. Be selective in your selling. Avoid short selling in IT and banks. IT is looking to consolidate whereas banks are looking strong. The Nifty futures discount is constant at 40 points. Today’s direction of the market is totally dependent on the global markets as the fed is expected to meet and the outcome of this meet will decide the direction of the US markets. For today, the Nifty should find support at 4333-4310-4287 and should face resistance at 4387-4407-4450.

Futures Trading Calls:

Buy I Flex at current levels for target 2220.
Buy M&M at current levels for short term target of 730.
Buy Petronet LNG if sustains above 65 for target 68.
Buy SBI if closes above 1720 for target 1775.

Sell Cairns India at current levels for target 138 with stop loss 149.

Cash Market Calls:

Buy India Glycols if sustains above 184 for target 202.

Points to Note:
1. All calls are for swing trading and should ideally hit the target within 5-6 trading sessions. Any calls other than swing calls will be specifically mentioned.
2. The calls provided on day 0 holds good for the next 2-3 trading sessions if fails to sustain above/below the mentioned levels on day 1.

Disclaimer: The recommendations provided would be purely on my personal opinion and doesnot reflect any fund house interest or my personal holdings. I would not be responsible for the loss in trades undertaken based on my recommendations.